Enron subverted within the structure of the rational business Essay

Enron subverted within the structure of the rational business organisation - Essay employmentThe book by Bethany McLean and Peter Elkin (2005), talks of the way the hypothetical future value of their investments were booked and profits shown for the shareholders to consume. Enron started with vegetable oil pipelines and made it to the broadband and to a host of other services including electric distribution and power supply. age the core competency of the company lies in pipelines, they went into energy trading and broadband systems. They did not work proscribed and build over their core competencies which are advocated by most of the management theorists (C K Prahlad & Gary Hamel, 1990). Enron was bankrupt on January 25th, 2002. Though at that place were number of fraudulent practices that the company and its executives practiced, it is also true that the society had a lede role to play in the fashioning of the company and its debacle. Supporting an untrue situation arises wh en the people compound are greedy and tempt a crowd to be greedy as well.Enron became ambitious with the deviate in leadership and when the mantle was taken over by Jeff Skilling. Enron was ambitious even prior to that under(a) the stewardship of Ken Lay. The growth was steady and the finances proved strong. But with Skilling taking over the leadership of the company, there was a subtle but a sure change in the approach of the management towards making money. ... It was just that Enron did not have time to reorient itself and plan for a classic change and no(prenominal) of the theories of change management seem to have been adopted (Kotter & Schlesinger, 1979). The companys executives were paid using the company shares which were traded freely in the market. The company maintained a blue price for their shares and this resulted in their own staff having a large value added to the share prices of the company. The company started benefiting by insider trading and ensuring that t he company continued to have a high share price and the rate of growth of the company was well over 30 to 50% every(prenominal) year. This was too good to consider but then the share holders and the company employees too continued to believe in this performance. The company hid a number of facts ab fall out the debt status of the company and failed to show the right song on their reports. Hidden in numerous shell companies across the world were all these losses that was apply by the senior executives of the company to hide and mislead the public and the share holders by giving them revile information during critical times (Bethany McLean & Peter Elkin, 2005). This has also resulted in a gross violation of fair play by the company and its board.These hidden facts were so high that the company could not rectify these problems and come out of it unscathed. This in itself led the company to file for its bankruptcy. The senior executives were held for taking the country and its peop le for a charge up and having misled them. The employees of the company and the share holders of the company felt cheated at the end of the game. This debacle led not lonesome(prenominal) the company to bankruptcy but also took most of the senior people into the jail. fundamental law CultureOrganisation culture of any organisation